Russia continues with privatizations, ends bids for advising on United Grain

Reuters Staff

2 Min Read

MOSCOW (Reuters) - Russia’s economy ministry is continuing with the sale of state assets despite new U.S. sanctions and this week closed the bidding from banks for advising on the privatization of United Grain Company (UGC).

Under the Russian privatization plan, aimed at plugging holes in the state budget and approved before new U.S. sanctions were signed by President Donald Trump earlier in August, UGC should be privatized in 2017-2019.

In the email, a spokeswoman for the economy ministry which is in charge of the privatization said the ministry had been taking bids for an adviser role until Aug. 14.

The winning bidder chosen by the ministry will work on issues related the structure, methodology and parameters of the deal, the spokeswoman said, without providing further details.

Under the new law, Trump could impose sanctions against U.S. firms or citizens if they invest $10 million or more in Russian assets during the privatization.

Russia was actively preparing to reduce its stake in the shipping company Sovcomfot this year but postponed privatization plans before new sanctions were signed.

Reporting by Polina Nikolskaya; editing by Katya Golubkova and David Evans